Asia Fuel Oil-380-cst premiums extend gains, visco and 180cst spreads spike  

SINGAPORE: 380-cst cash premiums extended gains made in the previous session to reach a four-month high on Wednesday, lifted by persistent bidding interest amid reducing stocks after weeks of aggressive supplier offers in the Platts price assessment window.

Meanwhile a shortage in prompt supplies of blend stock has boosted viscosity spreads and prompt-month 180-cst fuel time spreads as blenders seek cutter supplies.

SWAPS MARKET

- On the Intercontinental Exchange (ICE), time spreads of 180-cst fuel oil for the May/June contract jumped $2 a tonne from Tuesday's settlement, trading at $3.75 a tonne by 5:30 p.m. Singapore time (0930 GMT).

- The May visco spread, the differential between the price of 180-cst and 380-cst fuel oil, also rose sharply to $9.50 a tonne on Wednesday, up $2.25 a tonne from the previous session.

- The more actively traded 380-cst May/June contract rose 25 cents a tonne from the previous session to $2 a tonne by the same time on ICE.

- Traders, however, noted that the traded volumes of time spreads and visco spreads on ICE were relatively low and did not exceed 50,000 tonnes in contracts each.

WINDOW TRADES

- 380-cst fuel oil cash premiums rose 62 cents a tonne from the previous session to $3.21 a tonne to Singapore quotes, its highest since Jan. 3.

- Seven cargo trades were reported in the Platts window on Wednesday totalling 120,000 tonnes of 380-cst fuel oil as well as 20,000 tonnes of 180-cst fuel oil.

- Please click on for more details.